Tired of the the highs and lows of your monthly income? Do you understand the patterns in your practice that make one month great and the next month a letdown? Check out episode 35 of Business of Dentistry to learn how to recognize lost income and how to create a plan and strategy to reduce it.
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Recently I was talking with a friend about the seasonal ups and downs in my practice. I was explaining how summers are very busy for us and the fall isn’t quite as productive. He suggested I chart out my productivity and income for the last 12 months, and then look at the best month and the worst month. He said the difference between the two is lost income.
I wasn’t quite sure what he meant so we dug in further. I am diligent about charting my monthly data so I was able to see July of last year was the most productive and September was the least. The rest of the year was all over the map!
Let’s look at specifics to better understand the phrase “lost income”. For example, if your best month brought in $150k and your least active month generated $75k, then the lost income in that worst month is $75k.
Do you know what your numbers are? What was your least productive month versus your most productive month? Subtracting the lowest number from the biggest number will give you your lost income (or lost productivity, I use the two phrases interchangeably on today’s show).
Once you know that number now ask yourself why was your most productive month so productive. Do you know? Was it because you ran a special marketing campaign? Was it because kids were not in school? And was it fun for you and your staff, or was it chaotic?
And was your least productive month slow because you were on vacation, because kids were back in school, etc? Is that a slow time of year traditionally or was there another reason?
The key to leveling out the gap between those two numbers is to know what the gap is, why it exists and then creating a plan and strategy to bridge it. Can you run a special marketing campaign for that slow month? Can you take your vacation at another time of year? If you need some ideas or someone to bounce thoughts off of talk to your business manager, or your office manager and create a strategy together.
Once you have a strategy in place also choose your daily target. Take the monthly total you want to hit and divide by the number of days you want to work in that month, the number you are left with is your daily goal.
With that all in place you are well on your way to recouping lost income and regaining productivity in your business. This is an essential tool to running a smoother practice, and decreasing your worries about monthly slumps. The first step to doing this is to know what your numbers are so your for action item this week is to look at your data and gather that information. Then leave a comment here or send me an email, after you listen to episode 35 of Business of Dentistry!
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